New Mexico tipped minimum wage
In effect since January 1, 2023
$3.00 minimum cash wage
Employers can take a tip credit of up to $9.00 an hour, as long as cash wages plus tips reach the $12.00 minimum for every hour worked. An employee counts as tipped if they get more than $30 a month in tips.
Tip credit check
Enter one pay period for a tipped employee in New Mexico. The calculator shows whether tips covered the gap between the cash wage and the minimum wage, and what you owe if they didn't.
Assumes a single workweek and straight-time hours. Overtime, tip pools and service charges have separate rules.
Local tipped wages in New Mexico
| Place | Minimum wage | Tipped cash wage |
|---|---|---|
| Albuquerque | $12.00 | $7.20 |
| Santa Fe County (unincorporated) | $15.40 | $4.62 |
Rules that apply everywhere
- The employer must tell tipped employees about the tip credit before taking it, under federal rules.
- Tips belong to the employee. Managers and supervisors can't share in a tip pool.
- If tips and cash wages fall short of the minimum in a workweek, the employer pays the difference.
Federal tip rules: DOL Fact Sheet #15.
Running payroll in New Mexico?
Sources
- New Mexico Legislature (SB 437, 2019, amending the Minimum Wage Act, NMSA 50-4-22); enforced by NM Department of Workforce Solutions · data as of January 1, 2023 · last checked October 8, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.